WSJ: Rand Paul victory ‘sends Fed critic to Senate’

POSTED 7:40 PM CST — Rand Paul has been “projected” the winner[1] over incumbent Jack Conway uniformly in the mainstream press, and is expected to be named Senator-elect in Kentucky. Numbers that have come in since the polls closed appear very close[2] to the latest polls published just prior to the election, showing a double-digit lead for Rand Paul. In this election, his victory is one identified with the Tea Party, with the GOP struggle against President Obama, and/or with Libertarian- and Constitutional- conservatives everywhere.

But the system knows that more than anything, Rand Paul represents an anti-establishment tide.

Phil Izzo cites that “Retiring Sen. Jim Bunning, who Paul succeeds, has been the chief Fed critic in the U.S. Senate,” in Kentucky, indicating that Rand Paul could inherit Bunning’s place on the Senate Banking Committee. Izzo goes on, “Of course, there’s no guarantee that Paul will take Bunning’s spot on the Senate Banking Committee. But judging from his interest in the Fed, it seems likely that Paul will seek a spot on the influential panel.”

Without a doubt, Bernanke and the others must be wondering whether greater scrutiny will come upon the Federal Reserve with the election of Rand Paul. Already, his father, Congressman Ron Paul has become one of the strongest voices against the institution, and the economic crisis has put greater focus on the Fed. The high profile calls to audit the Federal Reserve, under a bill sponsored by Ron Paul, have gained significant support.